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Estate, Gift, and Trust Taxation Flashcards

6 cards from real CTA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Estate, Gift, and Trust Taxation flashcards as text
  1. What is the federal estate tax exemption (unified credit) for 2024?

    Answer: $13,610,000

    The federal estate and gift tax exemption is $13,610,000 per individual in 2024.

  2. What is the annual gift tax exclusion per recipient for 2024?

    Answer: $18,000

    The annual gift tax exclusion is $18,000 per recipient in 2024, allowing tax-free gifts without reducing the lifetime exemption.

  3. Which federal form is used to file the estate tax return?

    Answer: Form 706

    Form 706 (United States Estate Tax Return) is filed by the executor of a decedent's estate when the gross estate exceeds the filing threshold.

  4. The step-up in basis at death allows heirs to:

    Answer: Receive inherited assets with a cost basis equal to fair market value at date of death

    Assets inherited from a decedent receive a new cost basis equal to fair market value at the date of death, potentially eliminating built-in capital gains.

  5. Which type of trust is included in the grantor's gross estate at death?

    Answer: Revocable living trust

    Assets in a revocable living trust are included in the grantor's taxable estate because the grantor retains the right to revoke or amend the trust.

  6. The generation-skipping transfer (GST) tax applies to transfers to:

    Answer: Grandchildren and other skip persons

    The GST tax applies to transfers to skip persons, which are individuals who are two or more generations below the transferor, such as grandchildren.